Industry superannuation funds MTAA Super and Tasplan will merge on 1 October, 2020 and finalised an unconditional agreement today and current Tasplan chief executive, Leeanne Turner will assume the CEO role of the new fund.
The combined funds will have over $23 billions in funds under management and approximately 335,000 members, according to a joint announcement by the two funds.
It said the combined fund’s corporate and trustee functions would be based in Canberra, with satellite offices in Tasmania and other locations, in recognition of the merger’s ‘best of breed’ approach. MTAA Super’s administration services will be moved in-house to Tasplan’s Hobart facilities.
Tasplan chair, Naomi Edwards, said: “By combining our strengths, we are creating a multi-industry fund providing quality, customised service to members and employers across the country”.
The announcement noted that the combined fund’s scale would provide efficiencies that could be passed on to members through improvements to products and services, low fees and strong returns.
MTAA chair, John Brumby, said the merger would enable the fund to negotiate top quartile investment management fees and take advantage of fee scale discounts – meaning value for money for members.
The two fund chairs said the merger was driven by shared values and a desire to secure better member outcomes.
“The current political and legislative landscape will likely mean an increase in super fund mergers over the next few years,” they agreed. “By merging now, MTAA Super and Tasplan have chosen to be on the front foot and stay in control of our destiny, and member outcomes.”
The announcement noted that on completion of the merger, Leeanne Turner, current chief executive of MTAA Super, would assume the CEO role of the new fund to ensure continuity of leadership.
Wayne Davy, current chief executive of Tasplan Super, would continue in that role until merger completion date, working closely with Ms Turner to ensure a smooth transition.
Turner and Davy said their focus will now be on making sure the transition is as smooth as possible for members and employers.
“We’ve got a bit of work to do to consolidate our systems and processes. We’re confident this can be done with minimal impact to members. At the end of the day members and employers can still expect to receive quality support and services face-to-face, over the phone and online. That will never change,” they said.